Bay View Bank

Bay View Bank was a San Mateo, California, based bank which, at its height, operated 58 branches across the San Francisco Bay Area. It was one of the largest locally based banks in the San Francisco market. It had $3.03 billion in combined total deposits and $731,000 in loans, as of September 30, 2002.

Bay View Bank
TypeSubsidiary
IndustryFinancial Services
FateLiquidation
  • Bay View Bank's parent company, Bay View Capital Corp., voluntarily liquidated both itself and its namesake bank. Retail banking operations acquired by U.S. Bank.
SuccessorU.S. Bank
Founded1973 (1973)
DefunctNovember 1, 2002 (2002-11-01)
HeadquartersSan Mateo, California
Total assetsUS$ 3.87 billion (09/2002)
Number of employees
707 (09/2002)
ParentBay View Capital Corporation
WebsiteArchived official website

A wholly owned subsidiary of Bay View Capital Corp., Bay View Bank was liquidated in 2002 and sold off in parts.[1][2] U.S. Bank bought its retail branch network and home mortgage assets,[3] and Washington Mutual bought its multifamily and commercial real estate assets.[4]

History

Bay View Capital Corporation was traded on the New York Stock Exchange under the ticker symbol BVC. Its stock suffer greatly at the end of the Twentieth Century. After the value of its stock had dropped 50% during, Bay View Capital decided in May 2000 than it was time sell some or all of its business before the value of the company drops further.[5] Eventually, the owners of the corporation would vote for dissolution and gradual liquidation in the effort to protect equity values.[6]

Bay View Bank suffered a $234.5 million loss in bad loans in the three months during 2000 alone.[7]

In November 2000, Wells Fargo and Golden State Bancorp had expressed initial in purchasing Bay View Bank.[7] However, Bay View Capital rejected their bids of approximately $325 million for being far too low.[8]

In July 2002, Bay View Capital announced that it was in the process of selling the offices, deposits, and only some loans of Bay View Bank to U.S. Bancorp for approximately $429 million while the mortgages were being sold to Washington Mutual at a "slight premium to book value".[2] Both sales were completed by November 2002.

References
  1. Calvey, Mark (July 22, 2002). "Bay View liquidates, sells assets to U.S. Bank, Wamu". San Francisco Business Times.
  2. "U.S. Bank Agrees to Purchase Bay View Bank Retail Branches". PR Newswire (Press release). July 22, 2002. Archived from the original on 2017-04-23. Retrieved 2017-04-22.
  3. "Bay View Capital Closes Sale of Branches to U.S. Bank". PR Newswire (Press release). November 1, 2002. Archived from the original on 2017-05-19. Retrieved 2017-04-22.
  4. "Bay View Announces Sale of Commercial and Multifamily Loans To Washington Mutual". PR Newswire (Press release). August 12, 2002. Archived from the original on 2017-04-24. Retrieved 2017-04-22.
  5. "Bay View Hires Merrill Lynch to Assist in Sale of Its Businesses". Los Angeles Times. May 31, 2000.
  6. "Bay View Capital Corporation Investors Approve Plan of Dissolution And Stockholder Liquidity". PR Newswire (Press release). October 3, 2002. Archived from the original on April 23, 2017. Retrieved April 23, 2017.
  7. Zuckerman, Sam (November 20, 2000). "Wells Fargo Aiming for Bay View". San Francisco Chronicle.
  8. Zuckerman, Sam (January 3, 2001). "Bids for Bay View Don't Impress Board - Delayed action could prove costly to bank". San Francisco Chronicle. p. C1. Troubled Bay View Capital Corp., which put itself up for sale in May, got buyout offers worth roughly $10 per share, or $325 million, from two giant San Francisco financial institutions, sources familiar with the matter said. The bids received from Wells Fargo and Golden State Bancorp before a late November deadline were below what the board of the San Mateo bank had expected, so directors postponed responding, the sources noted. The nonbinding offers were subject to inspections of Bay View's loan portfolio, meaning that buyout prices could be knocked down further. Reflecting Bay View's financial problems, the bids came in below the bank's net worth as measured by the value of shareholder equity. Banks typically sell at a substantial premium to book value. Still, some analysts said Bay View should have jumped at the offers. Since the bids were received, its shares have fallen by more than a third, closing yesterday at $6.06.
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